Should a college student have 2 credit cards?
However, it's generally a good idea to have two or three active credit card accounts, in addition to other types of credit such as student loans, an auto loan or a mortgage. Just remember: The number of credit cards you own is less important than how you use them.
Multiple credit cards help you afford your everyday purchases but also your emergency expenses. You can rely on credit when you run into an unexpected expense, but with two cards you can prevent that large expense from hurting your credit score.
There is no right number of credit cards — it depends on how many you can manage. Having multiple credit cards helps reduce your utilization rate and provides lenders with more information to better gauge your creditworthiness.
49% of college students have two or more credit cards. 83% of college undergraduate students in the United States have at least one credit card.
Annual fees: Be aware of having multiple cards that charge annual fees. Paying these fees may mean that the cons outweigh the pros that may come with the card, like rewards or points. Harder to stay organized: The more cards you have, the easier it can be to forget to pay a bill on time or keep track of credit limits.
While having more than one credit card allows you to make the benefit of the interest-free period, improves your credit score, offers you additional benefits in the form of rewards, cashbacks and discounts, it also increases the risk of getting trapped into debts and becomes difficult to manage.
Yes, assuming you use your cards responsibly. If you do, then having additional cards will generate consistent spending information for the credit bureaus each month, increasing your total credit limit and keeping your credit utilization rate low.
Therefore, every new credit card you open decreases the average length of your credit history. While new card accounts often lower your credit score about five points, it typically rebounds in a few months. However, if you frequently open new cards, the negative effect can add up.
Key takeaways
It's a good idea to have more than one credit card, but applying for multiple cards within a short period of time could hurt your credit score.
Key takeaways: There isn't a set number of credit cards you should have, but having less than five credit accounts total can make it more difficult for scoring models to issue you a score and make you less attractive to lenders.
Is it bad to have 2 credit cards at 19?
There's no such thing as a bad number of credit cards to have, but having more cards than you can successfully manage may do more harm than good. On the positive side, having different cards can prevent you from overspending on a single card—and help you save money, earn rewards, and lower your credit utilization.
Getting a student credit card now (and using it wisely) can help you build your credit score so that it's in good shape by the time you graduate. That's because you'll be adding positive information (e.g., on-time payments) to your credit report, which can increase your credit score.
Among those who have at least one credit card, college students now have an average of 5.2, a new report shows. That's higher than the 4.4 cards held last year by a typical card-holding American of any age, according to Experian.
Most student credit cards will have a limit of less than $1,000, with some issuers providing an initial limit of just $500.
Not checking your credit score often enough, missing payments, taking on unnecessary credit and closing credit card accounts are just some of the common credit mistakes you can easily avoid.
Credit experts advise against closing credit cards, even when you're not using them, for good reason. “Canceling a credit card has the potential to reduce your score, not increase it,” says Beverly Harzog, credit card expert and consumer finance analyst for U.S. News & World Report.
In general, it's better to leave your credit cards open with a zero balance instead of canceling them. This is true even if they aren't being used as open credit cards allow you to maintain a lower overall credit utilization ratio and will allow your credit history to stay on your report for longer.
| Card | Best for | Annual fee |
|---|---|---|
| Capital One SavorOne Student Cash Rewards Credit Card | Cash back | $0 |
| Self - Credit Builder Account + Secured Visa® Credit Card | Building credit | Secured Card $25 |
| Secured Chime Credit Builder Visa® Credit Card | Building credit with no deposit and annual fee | $0 |
Total accounts: You need 21+ accounts to score "Excellent." If you have 20 cards and low utilization, you're seen as more responsible to the credit agencies.
The average adult has around 5 credit cards, including store credit cards, but there's no golden rule for how many credit cards you should have - or how many credit cards is too many.
When should you get a second credit card?
It all depends on your unique needs and circ*mstances. You might consider a second credit card if your credit score has recently improved, you want to maximize rewards potential or you have high-interest debt you want to transfer to another issuer.
Making on-time payments to creditors, keeping your credit utilization low, having a long credit history, maintaining a good mix of credit types, and occasionally applying for new credit lines are the factors that can get you into the 800 credit score club.
- Best overall: Wells Fargo Active Cash® Card.
- Best cash back on everyday spending: Blue Cash Everyday® Card from American Express.
- Best for long intro APR: Wells Fargo Reflect® Card.
- Best for balance transfers with excellent credit: Citi® Diamond Preferred® Card.
Although adding extra credit cards to your profile won't directly help your score, it could provide an indirect lift by reducing your credit utilization ratio. Utilization is simply the amount you owe on your cards divided by your available credit.
The 5/24 rule is an unofficial policy that dictates that Chase won't approve you for its cards if you've opened five or more personal credit card accounts from any issuer in the last 24 months. Put simply, the number of cards you've opened in the previous two years will affect your approval odds with Chase.
